You are given the following information: The cost of plant and installation expenses will be Rs100,000 and Rs 100,000 respectively. Net working capital of Rs 40,000 is required at the beginning. The…

You are given the following information: The cost of plant and installation expenses will be Rs100,000 and Rs 100,000 respectively. Net working capital of Rs 40,000 is required at the beginning. The sales revenue and operating expenses will be Rs 500,000 and Rs 200,000 respectively for the five years. Book and cash salvage value of the machine expected at the end of five years are Rs 100,000 and Rs 80,000 respectively. The income tax rate applicable is 40% and cost of capital is 10%. Required: a) Net investment at the beginning. b) Annual cash flow after tax. c) Net Present Value (NPV). Would you accept the project?